Cost Savings in Gulf Air

335 Words2 Pages
The airline's aggressive cost-saving plans and measures, started in 2010 following its new business strategy, has yielded positive results in terms of cost-control, cost-efficiency, expenditure reduction and manpower optimization. Encouraged by the results, the national carrier is pushing forward with its cost-efficiency measures in 2012 and is targeting a further 15% reduction in its cost base for the full year; it has already achieved a savings of BD6.8m between Jan and May this year. Announcing it today Gulf Air CEO Samer Majali said, 'I am glad to report that our several restructuring initiatives aimed to reduce costs have helped us reduce our operating losses, achieve cost efficiencies without affecting the quality of our products and services offering and customer service.' He continued, 'Despite a very difficult 2011 caused by the regional geo-political situation and higher fuel prices that have severely impacted our business, we were able to achieve this. We used this difficult period as an opportunity to focus internally reviewing our functions such as operations, services, products, fleet maintenance, fuel savings, contract negotiations and manpower optimization. We applied tighter control over expenditure and implemented costcontrol measures, higher asset productivity and more streamlined processes.' He added, 'While we are pleased with what we have achieved so far, we have set a definitive action plan for 2012 to achieve a further 15% reduction on our cost base this year and are aggressively pushing forward towards our target.' 'All these measures are being taken while maintaining the highest levels of flight safety, schedule reliability and passenger convenience. The credit goes to all my colleagues at every level and every department, who have been working together to achieve this,' Mr. Majali concluded. During 2010-2011, Gulf Air reduced its costs by
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